Amazon will pay $2.5 billion to settle Federal Trade Commission charges alleging the company enrolled millions in Prime without consent. The settlement includes a $1 billion civil penalty and $1.5 billion in consumer refunds for “deceptive Prime enrollment practices.” About 35 million customers were affected by unwanted enrollments or difficult cancellation processes. FTC Chairman Andrew Ferguson said “Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime, and then made it exceedingly hard for consumers to end their subscription.” Eligible customers will automatically receive up to $51 within 90 days. Amazon must redesign enrollment and cancellation processes, including adding “a clear and conspicuous button for customers to decline Prime.” The company can no longer use buttons saying “No, I don’t want Free Shipping.” (Story URL)
